Reforming the Proxy Advisory Racket

It's hard not to get cynical observing the characters who inhabit the District of Columbia. But in a significant if under-reported recent development, the Securities and Exchange Commission has begun to dismantle a dangerous bastion of Washington-aided corporate cronyism.

Last summer we told you about SEC Commissioner Daniel Gallagher's campaign to reform the proxy advisory racket. A 2003 SEC rule, combined with misguided advice from SEC staff, had all but required many investment fund managers to hand off voting decisions...